HOUSTON, Texas, Jan. 4, 2017 /PRNewswire/ — Houston American Energy Corp. (NYSE MKT: HUSA) today announced that it has entered into a Participation Agreement with Founders Oil & Gas III, LLC (“Founders”) pursuant to which Houston American will acquire from Founders a 25% working interest in two lease blocks covering approximately 800 acres in Reeves County, Texas.
The purchase price for the interest is $5,500 per net mineral acre, or a total of $1.1 million.
Founders will serve as operator of the acreage with drilling of an initial well expected to commence by July 1, 2017 targeting potential resources in the Delaware Basin (which is a sub-basin of the Permian Basin) located in west Texas.
John P. Boylan, CEO and President of Houston American stated, “After evaluating numerous opportunities over the past year, we are excited to have identified and agreed to participate in this Delaware Basin prospect and to develop a long term relationship with Founders. We expect to initially target the Wolfcamp shale and Bone Springs formations, commonly referred to as the WolfBone play.”
The transaction is expected to close during mid-January 2017, subject to customary closing conditions, including Houston American’s ability to secure necessary financing.
About Houston American Energy Corp.
Based in Houston, Texas, Houston American Energy Corp. is a publicly-traded independent energy company with interests in oil and natural gas wells, minerals and prospects. The Company’s business strategy includes a property mix of producing and non-producing assets with a focus on Texas, Louisiana and Colombia.